Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-08-05

| Mexican Development = Woodland
and Her Toughs-The Moore
Black Affair-Etc.
| tsPECAL DISPATCHES TO THE REcoRD-UNIoSI
RAILROAD INVESTIGATION.
| Another Brief History of the Early Days
of the C. p. X. X.
| SAN FRANCISCO. August 4th.-In the absence
| this morning, the examination of Senator stan
| ford was postponed, and Daniel w. Strong of
| San Diego, who, in 1859, built wagon road
across the Sierras, was placed on the stand. He
| testified that while surveying this road he dis
| covered the possibility of constructing a rail
| road over the mountains, along natural di-
| vide. Subsequently he communicated his
| opinions and discoveries to Mr. Judah after
ward engineer of the Central Pacific Railroad,
who with him explored the route. The result
OF their discoveries was that they drew up aTti-
cles of association of what they called the Cali
| fornia Central Railroad Some subscriptions
| were obtained from prominent men az Auburn,
| Dutch Fiat and other places At Sacramento, a
large number of shares was subscribed for
Huntington, Hopkins d Co, were then In the
| hardware business. Charles Crocker was a dry
goods merchant near the plaza, and Governor
5tAU1OrQ, VINO nh1 lust been elected Governor,
| was interested in various projects. The witness
| had several interviews with Mr.. Huntington,
whose firm had just been burned out. He did
not think well of the project, sa ling that his
| firm, in its present financial straits could not
afford TO connect itself with such wild scheme
| as transcontinental railroad. Subsequently
interviews were arranged with stanford,
| Crocker, Huntington and others, and they fin
| ally agreed TO take the remainder of the stock
unsubscribed for. At a meeting of these gentle
men-the witness, Judah, and other stockhold-
Board of Directors. This committee selected
| Stanford, Huntington, Hopkins, Crocker, Judah
Charles Marsh and l. A. Gould and the witness,
Stanford being President, Huntington Vice-PreS-
| ident. Hopkins Treasurer and James Bailey Sec
| Tetary.
| The witness continued to detail the opera
| tons OF the surveying parties who went into
| the field, of which he and Judah took charge
| the voting of counties along the line TO aid the
road and the efforts to obtain funds. Up to 1862
he said about $500 900 was raised from the stock
| subscriptions Shortly after the Board of Eirec-
| tors was organized. disagreements began among
| the members There were various subjects
| which brought these disagreements about. The
| disagreements finally resulted in proposition
to buy or sell. About this time the witness went
| East and Engineer Judah died. The witness
| wrote and resigned a Director of the COM
| pany but received a letter from Governor Stan
| ford declining to accept his resignation as they
did not wish then to change the Board.
When he returned to California he found that
his stock had been closed out. He applied to
| Secretary Miller for it and was told that he
| could not look at the books. The stock had
then been increased to Sl00 000.0 900, and finally
after some negotiations, he was offered fifty
shares of stock for his tenth interest. This he
| refused to take. He afterwards decided to COM
mence suit, and intrusted 1t to Raymond &
Stratton, then a prominent law firm of Sacra-
| mento. He went to san Diego, and was kept
posted from time to time until finally the mat
ter was dropped. NJ. Raymond aiterward en-
tered the employ of the Central Pacific Com
pany.
Mr.. RAYMOND ASKS QUESTIONS.
Mr.. Raymond here interposed. Mr. Strong.
my name is Raymond, and am the man Won
just referred to. You do not know me, for You
made your arrangements with my partner
Stratton. Is not that 50?
Mr.. Strong-Yes. sir.
Q.-Don't you remember that your stock, not
having been paid for in cash as required by
the laws of the State, could not be issued by
the company? A.-Ies I believe that was the
case.
Q--Dont you know that I applied to the
Attorney-General, then Mr.. Hamilton whom
you considered your friend for permission to
sue the Central Pacific Company; and that in
Central Pacific counsel, aad myself nearly
came to blows over this matter of yours? A..
was so informed through letter from your
firm.
Q.-Don't you know that the Attorney-Gen-
eral, who you considered your friend denied
the application on the ground that the stock
not paving been paid for. a suit to compel its
issue would not be tenable under the law as it
stood2 Al have been so informed.
Mr.. Haymond-Gentlemen l do not wish it
stated here without denial that l ever took a
case for any man aud failed to do the best |
could for him. did not enter the employ of
the Central Pacific Company until 1851 and
prior 10 that date l never rendered them any
service. We took Mr. Strong's case about 1875
while 10 Hamilton was Acknowledgement
Owing to the fact that Mr.. Strong had never
paid for his stock, and the Central Pacific had
not been completed within two years, as re-
quired by law, and was an Illegal corporation as
originally organized, the only way we could
reach it was to apply to the Attorney General
for permission to use the name of the State in a
suit to recover the value of the stock This we
did, and, as Mr.. Strong admits. the permission
was refused by Attorney General Hamilton who
was his personal friend and who thoroughly
understood the case Is not this true Mr..
Strong?
MI. Strong-I never knew the permission had
been refused until saw it in the Sacramento
Onion.
A LETTER AND TESTIMONY.
letter was then read that had been written
by, witness TO the Commissioners under date of
July 26, 1887 which contained similar state
ments to those above made, and upon which
Colonel Raymond interrogated him During a
cross examination by Mr. Cohen upon the CON
tents of the letter, the witness testified that he
got receipts from the Central Pacific Company
for so per cent. payments on his stock This
was principally Tor services rendered the com
p9ny in the original surveys. Also in answer
10 questions by Colonel Raymond and Mr.
Cohen, witness said that he did not know the
statements in his letter to be true. but wrote
shS4AA a. shHEN9ttpAt' anu lp4ilS " DS
by the Commission.
John Miller, of Walnut Grove, Sacramento
county, was the next witness. He testified that
in 1873 he appointed Secretary of the Com
tract and Finance Company and afterwards
kept the books Of the corporation. At this time
there were six volumes filled with closed ac-
counts, in addition to the books of Chas. Crocker
& Co. He had looked at the books but was not
familiar with them. Prior 10 his taking charge
OF the books OF the company, W. E. Brown had
kept them He opened new set and carried
OF the Old accounts iufo that hot
ne never SAW the old books and has not seen
them since He did not know who packed
them up nor by whom they were carried away
Some abstracts of Browns books had been
taken, showing the principal accounts with the
Central Pacific aud Southern Pacific Companies
which the witness with other papers had given
y. Greene Curtis for safe keeping. Some years
afterwards Curtis objected to keeping them any
longer. and he WAS told to destroy them The
witness considered them of no value.
TESTIMONY OF W. Z. BROWN.
W. f. Brown was next sworn aud stated that
he kept the private accounts OF Stanford. Hunt
ington, Hopkins and Crocker. There was q safe
in the office large enough to keep all books of
the company. have not seen it since the fire
of 1873. / know the terms of contract between
the Central Pacific and Contract and Finance
Company. The latter company was to construct
the road from the state line eastward and do
all the work, even to the equipment of the road
The Central Pacific agreed to pay per mile for
this work $4,000 in cash and $4,000 in stock of
the road. first became acquainted with Mr.
petent man and was employed as q regular
clerk. remember having opened new set of
books tor him. Witness did not remember a
circumstance of Miller going to lunch and re-
turning and finding the books missing.
What search have you made for these books?
have searched through several storehouses
in Sacramento. and have looked through the
storeroom in the Fourth and Townsend street
building.
Do You deny that you took those books TO Lon
don with you?
do
Or to Paris
10.
Or that you took boxes with you that you did
not know the contents Off
I do
The examination of Mr.. Brown was not com
pleted al the hour of adjournin ant and he will
be heard again tomorrow
THE WHEAT DEAL.
Dresbach's Proposition as Basis of